The exogenous event at last Monday’s open forced the index below our first support given at 8260 in the weekly post and came within 15 points of the major monthly support of 8180, but once the index pulled up above 8260 again that same day there was no pulling back and the Nifty finished the week at the highs and clocked 306 points in the week.
Last week’s post can be reviewed here – https://vtrender.com/nifty-bn-weekly-view-spot-for-29-june-03-july15/
We maintain a buy on dips for the current week as well and are bumping up support for the week to 8370 spot. We will like to see the index trade above 8370 all though the week.
( Buy all dips with sl just below 8370 spot > Review if 8370 breaks> target of the move is 8590 this week )
The chart above shows the Nifty finishing at multi week highs . The Buyers noted near 8260 last week were quick to respond to the opportunity at the same levels earlier in the week and pushed the index 300 points.
The buyers have shown an interest to defend the lower levels and we will continue to see 8260 as the support for this auction all through the month. On the daily we have seen evidence of buying at around 8370 spot levels and we will continue to use that as the first line of support for this week.
Up above in the profile dated 20/04 on the left of the above charts we see excess from 8575 to 8610 spot levels. We feel the region around 8590 will serve up supply this week.
Buy dips till levels of 8370 are held but lighten up for the week if selling pressure shows near 8590.Anticipating a broad 8590- 8380 kind of week. We will react if that range breaks.
Outlook : Huge resistance seen at 19000 and further up at 19300. May find it difficult to go past on current volumes
The BankNifty opened up much weaker than expected . We had seen buying in BN at lower levels near 17580 and knew that dips would be used to cover shorts. Accordingly last week – “Dips upto 18060 should be used to cover shorts and build long positions for 18800 tgt with stops below 17940.”
The index dipped to 18086 on tues and rose higher from that dip to close at 18756.
The volume of the advance suggests that the move may find it tough to climb above 19050 kind of levels in the current week.
We see strong support in the index now at 18350 levels being POC of the week gone by.Second level of support now firm at 18060.
resistance overhead likely at 19050 during the week. We feel levels of 19050 if seen early in the week should be used to cut down long exposure in the index for a few sessions.